Initially, I was using an S -corp for my rehabs and LLC's for my buy and holds.Have since converted to a little different style.I do use multiple LLC'S for multiple buy and hold units as well.Partnership returns definitely have advantages.

Even if the worth dropped, if I had the renters pay off the property and the initial amount I put down, wouldn't I still be making money?

Though now that I think about it, I'm not sure how discounted cash flow analysis is going to be more meaningful than an IRR analysis for a positive cash flow asset with no initial investment.

If I have good I.D. and a big bank account and references to verify they are not just hiding, there is usually a middle ground that can be reached.

I did not think that the holder of the tax certificate initiated the tax deed sale?

The success or failure of this type of investment is largely determined by WHO you are doing business with.In summary, I like the strategy but you have to do homework on the deal AND the sponsor, talk to references, obtain and verify track record information, and be prepared to NOT invest if things just aren't adding up.Good luck!

Couple this with only 3.5% down and a 3.5% interest rate, you can't really beat it.Anyways, in my initial search for FHA financing, I found it difficult to find an up-to-date accurate source for FHA information online.

What should my initial offer be given that there are no unforeseen problems with the property?

Between that and my conversation with an attorney and CPA yesterday, it seems like the regular 501(C)3, with a traditional fundraising model, would be more effective initially.

My initial reference to risk was that houses can often yield a very low risk 8%.